CommerceWest Bank (OTCBB: CWBK) reported earnings for the three months ended September 30, 2011 of $279,000 or $0.07 per basic common share and $0.07 per diluted common share, compared with net income of $8,000 or $0.01 per basic common share and $0.01 per diluted common share for the three months ended September 30, 2010, an increase of 600%. Net income for the nine months ended September 30, 2011 was $1,004,000 or $0.23 per basic common share and $0.23 per diluted common share, compared with net income of $510,000 or $0.12 per basic common share and $0.12 per diluted common share for the nine months ended September 30, 2010, an increase of 92%.

Allowance for loan losses as a percent of CommerceWest Bank loans was 3.04%.

A fortress balance sheet, with a tier 1 leverage ratio of 13.08% and total risk based capital ratio of 22.49%

Nonaccrual loans as a percent of total assets are 0.57% down from 3.43% or 83% year over year

Nonperforming assets as a percent of total assets are 1.55% down from 4.11% or 62% year over year

Strong liquidity with $130 million in cash and liquid investment securities

3rd quarter write down of OREOs from bank acquisition of $515,000

Mr. Ivo Tjan, Chairman and CEO, commented, “Management is encouraged by the 2011 financial results for the Bank. The Bank has the right capital levels, revenue focus, cost control plan, and deployment strategy for excess liquidity. Recognizing and addressing asset quality issues early, positions the Bank for strong future earnings, which will in turn, improve shareholder value. Although the Bank significantly de-levered classified loans during the quarter, there has been an encouraging up-tick in loan demand. Asset quality has materially improved, especially compared to our local peer group.”

"With the lack of robust loan demand or attractive investment options, coupled with a flat interest rate environment for the foreseeable future, we reviewed our depository accounts during the quarter. Our goal was to reduce the number of transactional accounts, defined as high rate accounts with no other relationship with the Bank or no opportunities for future relationship growth. These accounts are not advantageous or profitable in this environment. The Bank will continue its focus on growing non-interest bearing deposits, which we consider to be true core deposits and strategically will improve our future earnings power,” said CEO Ivo Tjan. “The team will push for the 'right' organic growth in the fourth quarter of 2011 and throughout 2012. We are confident with the Bank's ability to execute our strategic plan, given the strength of our fortress balance sheet, strong management team and proven business banking model.”

Total assets decreased $4.1 million as of September 30, 2011, a decrease of 1% as compared to the same period one year ago. Total loans decreased $34.8 million as of September 30, 2011, a decrease of 20% over the prior year. Cash and due from banks increased $1.2 million or 2%. Total investments increased $32.3 million or 51% from the prior year.

Total nonperforming assets decreased $8 million as of September 30, 2011, a decrease of 90% as compared to the same period one year ago. The Bank’s Texas Ratio was 12.15% as of September 30, 2011, a decrease of 86% from the prior year ratio of 30.3%.

Total deposits decreased $3.7 million as of September 30, 2011, a decrease of 1% from September 30, 2010. The Bank reduced borrowings outstanding by $6 million compared to the same period one year ago. The Bank’s liquidity position to total assets ratio improved from 26% as of September 30, 2010 to 72% as of September 30, 2011. Stockholders’ equity on September 30, 2011 was $44.9 million, an increase of 3% as compared to stockholders’ equity of $43.8 million a year ago.

Provision for loan losses for the three months ended September 30, 2011 was zero compared to $690,000 for the three months ended September 30, 2010. Provision for loan losses for the nine months ended September 30, 2011 was $160,000 compared to $2,215,000 for the nine months ended September 30, 2010, a decrease of 93%. The Bank’s allowance for loan losses as a percent of total loans was 3.04% for the CommerceWest Bank portfolio on September 30, 2011 as compared to 3.65% on September 30, 2010, a decrease of 17%.

Non-interest income for the three months ended September 30, 2011 was $333,000 compared to $323,000 for the same period last year, an increase of 3%. Non-interest income for the nine months ended September 30, 2011 was $1.6 million compared to $1.2 million for the same period last year, an increase of 31%. Non-interest expense for the three months ended September 30, 2011 was $2,451,000 compared to $2,532,000 for the same period last year, a decrease of 3%. Non-interest expense for the nine months ended September 30, 2011 was $7,835,000 compared to $7,980,000 for the same period last year, a decrease of 2%.

The Bank’s efficiency ratio for the nine months ended September 30, 2011 was 83.13% compared to 73.45% in 2010, which represents an increase of 13%. The efficiency ratio illustrates, that for every dollar the Bank made for the nine month period ending September 30, 2011, the Bank spent $0.83 to make it, as compared to $0.73 one year ago. Noninterest expense trends for the last two quarters are favorable, as management remains focused on improving the efficiency ratio. Noninterest expense is down 8% for the three months ended June 30, 2011 as compared to the three months ended March 31, 2011, and noninterest expense is down 5% for the three months ended September 30, 2011 as compared to the three months ended June 30, 2011.

Capital ratios for the Bank remain well above the levels required for a “well capitalized” institution as designated by regulatory agencies. As of September 30, 2011, the leverage ratio was 13.08%, the tier 1 capital ratio was 21.23%, and the total risk-based capital ratio was 22.49%.

CommerceWest Bank is headquartered at 2111 Business Center Drive in Irvine, CA, with Regional Offices in Orange County, Riverside County, Los Angeles County and San Diego County. We are a full service business bank and offer a wide range of commercial banking services, including concierge services, remote deposit solution, full-service internet banking, lines of credit, term loans, commercial real estate lending, SBA lending, and full cash management.

Mission Statement: CommerceWest Bank will create a complete banking experience for each client, catering to businesses and their specific banking needs, while accommodating our clients and providing them high-quality, low stress and personally tailored banking and financial services.

Please visit www.cwbk.com to learn more about the bank. “BANK ON THE DIFFERENCE”

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties.Actual results may differ materially from stated expectations.Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes, financial policies of the United States government and general economic conditions.The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained in this release to reflect future events or developments.